First let me say thank you for your service. It is truly appreciated and on behalf of all my colleagues we appreciate the sacrifices that you and your family make.
Great question and the short answer is Yes, it is possible. I have used the VA Loan myself and the qualifying amount will depend on the geographical region and limits set by the VA. I would also say, that while they do back the loans and provide some incentives there are some fees associated with them that go to the VA. I would suggest contacting a few mortgage group that have worked with VA Loans and get some direct feedback. I would be honored to help you through the process if you were interested.
Again, thanks for your service and good luck with your exciting search.
Andrea and Diana make some great points. It is not difficult. It is merely a type of loan that allows assistance for those who qualify. Once you qualify, the next step is finding a home within your range. Like any governent backed loan their will be some additional disclosures and inspections required, that are not always present in a traditional conventional loan.
The ability to put no money down will not affect the type of home you buy or location. In addittion, you can ask for seller's concession for upto 6% of the price of the home. The only difference is that home must appraise for the inflated amount.
Example you find a home you like for $100,000. Seller agrees to the contract. Your mortgage amount would be $106,000 with a $6,000 credit for your closing costs. Seller will still get their $100,000.
Good luck with your home search.
If your market has seen increased buyer traffic and you could possibly be in competition, the seller will look at their bottom line. If an equally good offer (good in regards to all the other terms that are part of an offer - price and closing help are not everything) is asking for half of the seller subsidy that you need, then they'll likely go with the competitor.
Last, but not least, I agree with a point Sally made below. I advice all my clients, VA or not, to have a little cushion in place for emergencies - there will be repairs and you want to be financially prepared to be able to handle those! If you have absolutely no savings, it may not be the best time for you to purchase (just yet).
I suggest you find a buyer's agent familiar with VA who'll be able to guide you and answer your question specific for your market. Best wishes!
BUT...is it wise to have ZERO invested in your new home? In my opinion, no. This is why we're in this housing crisis in the first place! People were able to get loans without putting anything into it. People were given loans who couldn't afford it. What happens if/when your home's value goes down? What happens when the furnace goes out, or the water heater breaks? If you couldn't afford to put any money down on your home, how are you going to pay for expensive repairs when they happen? (notice I say WHEN, not IF).
When people have zero invested, it's pretty easy for people to just walk away.
Don't get me wrong. I am all for home ownership and think it's a huge part of economic recovery. It's great that buyers can buy homes with little money down. But I do think buyers need to have something invested. Just my two cents! Good luck!